Europe Air Conditioning System Market

Europe Air Conditioning System Market Outlook (2022-2032)

European air conditioning system sales are currently valued at US$ 29.8 billion and is estimated to reach US$ 56.3 Billion by the end of 2032. Over the next ten years, the Europe air conditioning system market is projected to register 6.5% CAGR and generate an absolute dollar opportunity of US$ 26.4 billion by the end of the forecast period.

Demand for chiller air conditioning systems is expected to remain high, and this segment is set to account for more than one-third of the market share over the decade.

Report Attributes	Details
Europe Air Conditioning System Market Size (2021A)	US$ 28.1 Billion
Estimated Market Value (2022E)	US$ 29.8 Billion
Forecasted Market Value (2032F)	US$ 56.3 Billion
Europe Market Growth Rate (2022-2032)	6.5% CAGR
Germany Market Share (2021)	~21.2%
Germany Market Growth Rate (2022-2032)	~6.9% CAGR
Market Share of Top 5 Companies	~45%
Key Companies Profiled	Daikin Europe N.V. Hebs Group Limited Robert Bosch GmbH AB Electrolux Hocker Polytechnik GmbH Mitsubishi Electric Corporation Samsung Electronics Air Conditioner Europe BV Kelvion Holding GmbH Wilo SE Trotec GmbH

Air Conditioning System Sales Analysis in Europe (2017-2021) Vs. Market Growth Forecasts (2022-2032)

Air conditioning systems help keep the environment of a closed space at the desired temperature. These systems find high adoption in residential, commercial, and industrial applications alike.

The benefits of air conditioning units such as maintaining the appropriate temperature inside a room, aiding in enhancing the productivity of people employed in commercial places, etc., are placing greater demand for air conditioning units not only in Europe but across the world.

From the supply side, manufacturers are incorporating advanced technologies to launch energy-efficient air conditioning systems to drive their sales of air conditioning units over the coming years.

Rise in global temperatures along with frequent heatwaves across Europe is fueling demand for air conditioning units in multiple end-use areas. The energy-saving ability of AC units, making less noise, speed-controlled compressors, high durability, faster cooling, etc., owing to product innovation and research & development is supporting market growth in Europe.

• Short Term (2022 Q2 to 2025): Augmented application of air conditioning units in several end-use areas and applications to support short-term market growth?
• Medium Term (2025-2028): Rising inclination of consumers toward green air conditioning systems along with the integration of HVAC systems and building controls to sustain market demand in the medium term.
• Long Term (2028-2032): Evolving district-cooling technology as an efficient way of cooling buildings to emerge as a long-term market driving factor.

The European market for air conditioning systems witnessed 4.6% CAGR from 2017 to 2021. And as per the analysis by Fact.MR, a market research and competitive intelligence provider, the market is projected to expand at a high 6.5% CAGR throughout the forecast years (2022-2032).

Market share analysis based on system type and countries is provided in a nutshell in this image. Under the system type segment, chiller air conditioning systems dominated the market with 36% share in 2021.

Which Positive Trends are Bing Witnessed in the European Market for Air Conditioning Units?

“District-Cooling Air Conditioning to Set New Trend in Europe”

Demand for district cooling units is increasing across Europe. Although the technology has been present for decades, it is now finding augmented use on the back of multiple factors.

District cooling is a method where buildings are cooled with the help of chilled water passing from a central facility via pipes to several buildings. This provides for a cheaper way to cool building interiors along with lowering the carbon footprint of each building.

The district cooling method is much more efficient as compared to traditional air conditioning systems and is better suited for commercial buildings in Europe that require cooling throughout the year. There are numerous benefits of district cooling such as removing the need for loud AC units, adding flexibility to the electricity network, along with allowing the use of renewable energy in cooling systems.

All these factors are likely to support market demand and set a new trend for adopting air conditioning systems in Europe.

“Development in HVAC Designs to Provide Sustainable Solutions”

Traditional HVAC designs utilize chemical refrigerants, higher energy, and emit GHGs. The design of the HVAC system has evolved in many ways providing energy-efficient and sustainable solutions suitable for present needs.

As opposed to traditional HVACs dependent on cooling-based energy sources, utilization of renewable energy resources in AC systems is the most sustainable solution. Modification in the design of HVAC systems can now use renewable energy resources, including solar energy and ice energy, among others.

The desiccant-enhanced evaporative air conditioner is an intelligent design of HVAC that is expected to reduce 90% of energy consumption. Market demand is likely to propel on the back of manufacturers addressing energy efficiency challenges in air conditioning systems, and consistently evolving HVAC designs to drive adoption by end users.

Country-wise Insights

Which European Countries are Prominent Markets for Air Conditioning Systems?

“Germany & Russia to Account for High Sales of AC Units”

Germany’s air conditioning system market and Russia’s air conditioning system market hold 21.2% and 19.9% share, respectively, in the European market. These two markets are expected to rise sharply at 6.9% and 6.5% CAGRs over the forecast period, with researchers claiming that residential application of air conditioning systems will quadruple by 2030.

The spike in heat waves is one of the major factors fueling demand for air conditioning systems in these countries. Increasing temperatures giving rise to heatwaves in European countries is anticipated to lead to more demand for cooling systems for residential applications with more and more people buying air conditioning systems.

Thus, these factors are likely to support country-level market demand and growth over the coming years, more so in Germany and Russia.

Category-wise Insights

Which Type of Air Conditioning System are Manufacturers Selling the Most in Europe?

“Chiller AC Systems to Remain Immensely Popular across Europe”

The European air conditioning system market, under system type, is segmented into window, split, cassette, single-packaged chillers, airside and portable air conditioning systems.

Amongst them, chiller air conditioning systems dominate with 36% share in the overall market. Chillers are cost-efficient as they save money on utility bills and have fewer operating costs. Chillers provide a cost-effective way to cool down machinery as they protect equipment from overheating and provide for more powerful cooling levels.

Thus, owing to the above-mentioned factors, demand for chiller AC systems is projected to expand at 4.3% CAGR in Europe during the forecast years of 2022-2032.

Which Application of AC Systems is Expected to Remain Most Popular?

“Industrial Application of AC Systems to Remain Prominent”

Under application, the European AC system market is segmented into residential, commercial, and industrial applications.

The industrial application of air conditioning systems dominates the market with 35.1% share and is projected to expand at 6.5% CAGR over the assessment period.

Air conditioning systems for industrial applications reduce the temperature at workplaces and make the staff feel more comfortable, owing to which, they are more likely to work efficiently and provide greater productivity and enhanced performance. Air conditioning systems not only improve air quality but also help in keeping the equipment safe and protecting them from overheating.

Residential air conditioning systems and commercial air conditioning systems hold 30% and 34.9% share, respectively, in the overall market. These segments are likely to witness 5.9% and 4.4% CAGRs over the assessment period.

Market demand under these segments is expected to escalate on the back of climate change resulting in greater adoption of air conditioning units for several end-use applications.

Competitive Landscape

Key AC system manufacturers are resorting to technological advancements such as automated software along with the launch of eco-friendly air conditioning systems, which is attracting more consumers to buy air conditioning systems.

Also, market players are carrying out research & development to launch thermal-driven chiller air conditioning systems that come with low-energy costs and have electrically driven compressors.

For instance :

• Daikin Europe N.V. increased the capacity of its water-cooled centrifugal chiller range by launching the new DWDC C series with low GWP refrigerants in May 2022.
• Robert Bosch GmbH acquired Climatec in 2022. This acquisition is likely to strengthen the energy and building technology business of the company.

Fact.MR has provided detailed information about the price points of key manufacturers of air conditioning systems positioned across countries in Europe, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Europe Air Conditioning System Industry Research

• Europe Air Conditioning System Market by System Type :

  • Portable Air Conditioning Systems
  • Window Air Conditioning Systems
  • Split Air Conditioning Systems
  • Cassette Air Conditioning Systems
  • Single Packaged Air Conditioning Systems
  • Chillers Air Conditioning Systems
  • Airside Air Conditioning Systems

• Europe Air Conditioning System Market by Technology :

  • Automatic Air Conditioning Systems
  • Manual Air Conditioning Systems

• Europe Air Conditioning System Market by Mounting Type :

  • Unitary Air Conditioning Systems
  • Rooftop Air Conditioning Systems
  • PTAC Air Conditioning Systems

• Europe Air Conditioning System Market by End Use :

  • Residential Air Conditioning Systems
  • Commercial Air Conditioning Systems
  • Industrial Air Conditioning Systems

• Europe Air Conditioning System Market by Sales Channel :

  • Online Sales
    • Company/Brand Websites
    • e-Commerce Websites
  • Offline Sales
    • Electronic Stores
    • Franchised
    • Independent
    • Modern Trade Channels
    • Others

• Europe Air Conditioning System Market by Country :

  • Germany
  • Italy
  • France
  • Spain
  • U.K.
  • Russia
  • BENELUX
  • Rest of Europe